Tax implications on second job self employed

loveisdivine

Hi,

My husband currently works part time, his gross yearly salary would be around €11,000. This is done through PAYE.

Some casual driving work has become available with my employer where my husband would have to invoice them for his time. We've never done anything like this before so a bit unsure how it all works.

It would probably only be around 10 hours a week, meaning he would be getting around €400 a month, at what point does he need to declare this?

Will he need to register as self employed? Trying to decide if it will be worth it.

Edit - If it makes a difference its technically a "zero hours contract"

Mrs OBumble

loveisdivine wrote: »

Edit - If it makes a difference its technically a "zero hours contract"

A "zero hours contract" is an employment contract. What you are talking about is quite different: it's a contract for service, not an employment contract.

To answer your overall question: He has to register as self-employed as soon as he gets any self employment: all income needs to be declared. I would see this as quite worthwhile for E400 per month (and I did it when my side income only averaged E50/month).

It's not difficult.

loveisdivine

Thanks, I'd read a few other posts that said it was a real hassle registering and doing the tax self assessments. Hopefully its not too bad!

Do you know if the earning from the second job would just be added to the earnings from the first in regards to how much tax is paid? Or is there a different tax applicable to second jobs?

For example, say he currently earns 11k a year, and the point at which tax kicks in is 12k. The second job brings the total to 15k so he pays tax on the 3k over the 12k limit?

Or is it taxed separately?

Mrs OBumble

They're added together.

It can be easy to do.

Or if he wants to claim absolutely every expense he's entitled to, then it can be a lot more complicated. Personally I take the easy approach (claim my phone and direct purchases for my business, don't claim an electricity or for the laptop or various other things that I could but which would be complicated).

loveisdivine

Ah okay, that's not too bad then. It should mean he's still below the threshold for prsi and income tax. Just USC to pay, which if I go by one of those online calculators should only be €25 for every €100 earnt.

I don't think he would really have any expenses to claim. Any on the job expenses, like putting fuel into the car he's driving would be covered by the company.